The Movement for Change’s leader and former trades minister, Alan Kwadwo Kyerematen, has expressed dismay that those responsible for the Komenda Sugar Factory’s unsuccessful revival had not been held accountable.
Narrating the story behind why the factory had to be leased by the government to an Indian-based firm, West Africa Agro Liminted for a renewable period of between 15-20 years, Mr. Kyerematen disclosed that every assessment of the factory during his tenure as Trades and Industry Minister revealed gross discrepancies, particularly in project financing the value of the state facility.
The previous National Democratic Government, under the leadership of John Dramani Mahama, contracted a loan of $35 million from the Indian Export-Import Bank, for the reconstruction of the facility. An additional amount of $24 million investment to revamp the operations of the Komenda Sugar Development Company Limited was secured.
However, the facility was rendered a white elephant a few months after its commissioning in 2016. This Mr. Kyerematen said was worrying, citing that the valuation of the factory three months after the official commissioning put the value of the Komenda Sugar Development Company Ltd. at about some $18 million.
Clarifying why the facility was not operational, Mr. Kyerematen revealed that all entities that bid to take over the company later discovered that the value of the company was inflated and could not be the $35 million initially shared by the government.
“…… the man who won the bid, when I invited him to come and take over the company, he said the amount of money that he bid for was just for bidding purposes and that the factory does not deserve the money that the government was asking for”, Mr. Kyerematen revealed.
The reason government had to subsequently look for other investors was the fact none of the entities who bid to take over the company valued the company beyond $15 million.
Mr. Kyerematen says he had to call the transaction advisor out of frustration for another round of valuation. Values after the process reported the factory will not cost more than $16 million.
He said the NDC has questions to answer on the discrepancies in the amount borrowed to revamp the factory and the actual value of the company.
According to Mr. Kyerematen, the current Trades and Industry Ministry, K.T Hammond who led the new process of leasing the company out to West Africa Agro Company Limited, has done a yeoman’s job although the country does not stand to gain as much as anticipated under the new arrangement.
Ghana will receive $1 million annually for the period of the lease. But, Kyerematen believes Ghana could have made more if not for the identified discrepancies in the financing of the project.
